All capitals stay below 2% vacancy despite slight rise in rental availability
Australia's national residential vacancy rate edged up to 1.3% in June 2026, from 1.2% in May, as the total number of vacant dwellings rose to 39,229 from 37,844 the previous month, according to SQM Research.
Despite the improvement, vacancy rates remain well below long-term averages, with no capital city recording a rate above 2%.
Darwin recorded the tightest conditions nationally, with a vacancy rate of just 0.3% and only 64 dwellings available. Perth remained the second most constrained market, with its rate falling further to 0.6% from 0.7%, leaving 1,247 dwellings vacant. Adelaide held steady at 0.7% with 1,096 vacancies, while Brisbane was unchanged at 0.9% with 3,065 dwellings available.
Sydney's vacancy rate rose slightly to 1.6% from 1.5%, with 11,957 dwellings available, while Melbourne held at 1.6% with 8,640 vacancies. Canberra increased to 1.7% from 1.6%, recording 1,063 vacancies. Hobart rose to 0.7% from 0.6%, with 185 dwellings available.
National vacancy rates
Monthly residential vacancies and vacancy rate, 2005–2026 | Source: SQM Research
National advertised rents, while easing 0.4% over the past 30 days, remained 8.1% higher than a year earlier. The national combined weekly rent average stood at $697.43, with the capital city average at $793.63. House rents fell 0.5% over the month but remained 8.7% higher annually; unit rents were down 0.2% for the month and 7.1% higher year-on-year.
Among the capitals, Darwin recorded the strongest annual rent growth at 13.8%, followed by Hobart at 12.1% and Brisbane at 9.1%. Perth's combined rents fell 1.6% for the month but remained 5% higher than a year ago. Sydney's house rents averaged $1,149.81 per week, with combined rents 7.6% higher year-on-year.
"While the national vacancy rate has edged up to 1.3%, Australia's rental market remains exceptionally tight by historical standards," said Louis Christopher (pictured right), managing director at SQM Research. "Most capital cities continue to record vacancy rates below 1% or only marginally above, highlighting that rental supply remains insufficient to meet demand.
"The encouraging sign is that rental growth appears to be moderating in some markets, with national asking rents easing slightly over the past month. However, annual rental growth remains strong at 8.1%, and cities such as Darwin, Hobart and Brisbane continue to experience significant rental inflation.
"Perth and Darwin remain particularly constrained, with vacancy rates of just 0.6% and 0.3% respectively. Without a substantial increase in the supply of rental housing, affordability pressures are likely to remain a challenge for tenants for some time yet."
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